Monday, January 22, 2018

Indian rupee gave up most of its intraday gains and managed a modestly positive close on Friday, on back of selling of American currency by banks and exporters. Investors took support with the rating agency, Ind-Ra’s projection that the country's economic growth will improve to 7.1 percent in the next fiscal year 2018-19 from 6.5 percent in the current year 2017-18, supported by robust consumption demand and low commodity prices. Some support also came with Vice-President M Venkaiah Naidu’s statement that various decisions of the central government, including demonetisation and GST, are likely to have a positive impact in the coming years. Besides, splendid gains of local equities along with dollar’s slide against some currencies overseas, too supported the rupee.

The U.S. government shut down at midnight on Friday and it continues for today after Democrats and Republicans, locked in a bitter dispute over immigration and border security, failed to agree on a last-minute deal to fund its operations.

On the global front, dollar wallowed near three-year lows on Friday as heightened fears of a US government shutdown unnerved investors.